UK and EU transfer nearer to pact on post-Brexit monetary regulation
T
he UK and EU have taken a “significant step” in direction of nearer post-Brexit ties on monetary companies regulation, a Treasury minister has stated.
The UK and European Commission have printed a draft memorandum of understanding (MoU) on regulatory co-operation within the sector.
The UK monetary sector’s beforehand unfettered entry to the EU was largely reduce off after Brexit.
The MoU on how monetary regulators on each side would talk after the UK’s exit was initially anticipated in 2021.
It stalled amid the long-running dispute between the UK and EU over Northern Ireland buying and selling preparations, however was unlocked by the Windsor Framework struck by London and Brussels earlier this 12 months.
This framework will imply we are able to have interaction with our companions within the EU, a lot as we do with different main companions just like the US
The MoU nonetheless wants political endorsement from EU states, however “thereafter HM Treasury and the European Commission intend to sign the MoU shortly”, in line with the Treasury.
City minister Andrew Griffith stated: “This is just the first yet significant step towards a more constructive financial services relationship between the UK and the EU – one that is built upon mutual benefit and in the spirit of co-operation.
“Our financial markets are deeply interconnected and this framework will mean we can engage with our partners in the EU, much as we do with other major partners like the US.”
The European Commission on Wednesday adopted the draft MoU.
I’m assured that our relationship and future engagement in monetary companies might be constructed on a shared dedication to protect monetary stability, market integrity, and the safety of shoppers and traders
It commits the 2 sides to “jointly endeavour to pursue a robust and ambitious bilateral regulatory cooperation in the area of financial services”.
Mairead McGuinness, the EU’s monetary companies commissioner, stated: “The Windsor Framework allowed the EU and the UK to open a new chapter in our partnership based on a spirit of mutual trust and cooperation.
“I am confident that our relationship and future engagement in financial services will be built on a shared commitment to preserve financial stability, market integrity, and the protection of consumers and investors.”